Using a large, nationally representative sample, this study will analyze the use and costs of care according to level of cognitive function in the community elderly. Despite the prevalence and costliness of Alzheimer's Disease and other dementias, little is known about variation in cognitive function among the community-dwelling elderly as it relates to resource consumption. Such basic information about resource consumption is essential for meaningful cost of illness studies. Accurate information about current utilization and costs is also essential to evaluate the cost-effectiveness of new treatments for underlying causes of cognitive impairment. The NIA sponsored Asset and Health Dynamic Among the Oldest Old (AHEAD) provides the first opportunity to study variation in cognitive function, and care use and costs in a large, representative sample. The sample has a total of 8223 persons age 70 and over, and oversamples African Americans, Hispanics, residents of Florida and those age 85 and over. There are extensive measures of both the independent and dependent variables of interest. The independent variables include validated measures of cognitive function and extensive measures of covariates associated with cognitive function or with utilization and costs of care. Detailed measures of the dependent variables include self- reported utilization and out of pocket costs for acute and long-term care. The data also enumerates all caregivers, and the types and amounts of care they provide. Both paid and inkind services are detailed. The proposed study will describe and categorize cognitive function in the community elderly. It will then analyze care use and costs by level of cognitive function holding constant confounding variables.